What Do You Actually Need To Qualify For A Mortgage?

     

    Fannie Mae recently released their “What Do Consumers Know About The Mortgage Qualification Criteria?” Study. The study revealed that Americans are misinformed about what is really required to qualify for a mortgage when purchasing a home.

    To help correct these misunderstandings, let’s take a look at the survey results compared to the latest Ellie Mae Origination Insight Report, which focuses on recently approved loans.

     

    Survey Results vs. What’s Really Required

    FICO Score Distribution

     

    59% of Americans either don’t know (54%) or are misinformed (5%) about what FICO score is necessary to qualify.

    Many Americans believe a ‘good’ credit score is 780 or higher. 54% of approved mortgages had a credit score of 600-749.

     

     

    Typical Downpayment

     

    76% of Americans either don’t know (40%) or are misinformed (36%) about the minimum down payment required.

    Many believe that they need at least 20% down to buy their dream home. New programs actually let buyers put down as little as 3%.

     

     

     

    Bottom Line

    Whether buying your first home or moving up to your dream home, knowing your options will definitely make the mortgage process easier. Your dream home may already be within your reach.

     

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